OR Royalties Inc. (OR) Earnings Call Transcript & Summary

Good afternoon, and hello. I'm [ Doug Loud ] from O&M Partners, and I want to welcome everyone to the Osisko Gold Royalties' Townhall Webinar. Osisko Gold Royalties trades under the symbol OR on the New York Stock Exchange. For those of you who are new to these broadcasts, in 2014, O&M recognized a sea change was occurring in the non-deal investment markets. Suddenly, the information was way more available to a whole new generation of investors that couldn't be found in key financial centers. And today, investors are receiving information at home or in offices that used to be geared and available only to professional investors. The questions in the Q&A are going to be for everyone. This broadcast may answer questions, you didn't even know you should be asking. A question can easily be asked by going to the question portal of the go-to webinar or by e-mailing us. For any questions that remain unanswered, we will follow-up in a timely manner after the call. For those who are dialing in with their phones, the only way you can hear our prerecorded introductory presentation is on your computer speakers. That's not possible, you will be able to hear the main presentation 5 to 7 minutes afterwards. So please stay tuned. Today, we have a special introductory speaker, Sean Roosen, Mr. Roosen is the Chairman of the Board and Chief Executive Officer of Osisko Gold Royalties. He was a founding member of Osisko Mining from 2003 to 2014, and of Eurasia Holding, a European venture capital fund, but he has over 30 years of progressive experience in the mining industry. As founder, President, Chief Executive Officer and a Director of Osisko Mining, he was responsible for developing the strategic plan for the discovery, financing and development of the Canadian Malartic mine. He also led the efforts for the maximization of shareholder's value in the sale of Osisko Mining, which resulted in the creation of Osisko Gold Royalties. Mr. Roosen is an active participant in the resource sector and the formation of new companies to explore for mineral deposits, both in Canada and internationally. He also serves on the Board of Directors of Barkerville Gold Mines, Osisko Mining and Victoria Gold, companies that are part of Osisko's incubator model. Mr. Roosen has been recognized by several organizations for his entrepreneurial success and his leadership in innovative sustainability practices. He is also a graduate of the Haileybury School of Mines. Now here's Sean.

Thank you, everyone, and welcome to our webinar today, and thank you for taking the time to hear the Osisko Gold Royalties story. Today is a pretty big milestone for us is that we are able to execute our succession planning with the transition of my role as CEO of Osisko Gold Royalties to transition that role to Sandeep Singh who is going to be presenting as we get further into the webinar today. I thought I'd start by giving you a brief history of the group. As we said, we founded it -- we started with Eurasia Holdings, which was a venture capital private equity group based out of Europe, and we started basically in 2000, back when gold was under $300 an ounce. And we originally set out to look for resource assets in a down market and to do what private equity groups do, which is to buy low and to sell high. We came into the ownership of the Canadian Malartic asset in 2004, and we didn't really figure out what it was until 2005. But it was an extraordinary entrepreneurial story. We bought the project for $38,888 from a bankruptcy sale that had founded by a company called [ Nick Waters ]. We subsequently discovered the Canadian Malartic low-grade bulk tonnage deposit that became the Canadian Malartic mine, now the largest mine in Canada in terms of gold production with between 650,000 and 700,000 ounces per year of production, and well over 8.5 million ounces in the original reserve with subsequent reserve status increasing with the underground component as the current owners, Humana and Agnico, continue to push on the exploration in this extraordinary mining camp. Malartic is located between Val-d'Or, Rouyn-Noranda, and the Cadillac Break, which is one of the great gold belts of the world having produced more than 250,000 ounces of gold. Historically, it continues to be the location of other significant discoveries as people [indiscernible] deeper and the technology has changed, the commodity price increases, the [indiscernible] is really where we made our home and where we've had the world-class discovery that led to the formation of this mine and the creation of Osisko Gold Royalties in 2014. So as a group, Osisko Mining, the original one, we started this mine in 2009 with the construction. We raised $850 million in 2009 to complete the mine, which costs CAD 1.2 billion or about USD 850 million at the time. We went on to sell that mine to Humana, Agnico in 2014 for CAD 3.9 billion, and over $4.3 billion at the actual close as both companies like Humana, Agnico and the result in the Osisko Gold Royalties all went up and value before the transaction closed. So we started the Osisko Gold Royalties in 2014 with one producing asset and 4 nonproducing assets. And about a $500 million market cap, which has now transitioned to closer to CAD 2.5 billion to CAD 3 billion market cap or about USD 2 billion, with significant amount of producing assets coming on from 1 to 17 in those 5.5 years. In addition to what we did with Osisko Gold Royalties, we started the Accelerator model and with 8-K, the incubator model. And we're able to set the stage to incubate several other companies, not the least of which is Osisko Mining 2, which has the Windfall Project in Northern Québec has been extraordinary discovery, maybe the discovery of this cycle and has gone from an $8 million market cap in 2016 to a $1.4 billion market cap today. Several other success stories in the portfolio of the Accelerator companies as well. And we really set the stage to be a dominant brownfield developer in the Canadian mining scene, and we've been able to, through the course of the evolution of this model to put our footprint on a lot of the brownfield camps in Canada, not the least of which will be the launch -- relaunch of the Cariboo camp in the Central BC, which we announced we're doing with Osisko Development Corporation, which I will transition from CEO of Osisko Gold Royalties to CEO of Osisko Development here and when we can complete the RTO sometime in early December. A basic comment on the exploration and the mining sector in terms of gold in Canada. We see in the world has become a much smaller place for exploration development stories. And we see that there's a lot going on worldwide in terms of economies that are struggling, countries that are diluting their currencies in a significant way. Gold is [indiscernible] value in this extraordinary time with a pandemic. I think that has been well demonstrated when we popped the Cariboo Project in September of last year, for example, gold was around $1,320 an ounce, it's now over $1,900. I think everybody knows a little bit about the gold story, everybody want to own it, but it is the only currency in the world that's not backed by government debt. And I think it is an investment tool for everybody in some form or another. We prefer to own it through exploration development companies and royalty companies, in particular. On that note, I think that. I'll pass you over to Sandeep Singh. And just before I do, Sandeep and I have been working together since really since the beginning of his career at BMO, he was my investment banker, adviser through the Osisko one day through the sale in 2014, and has really done an extraordinary job, and I'm very happy that he's accepted becoming [indiscernible] and take the mandate of CEO and President of Osisko Gold Royalties to take the company to the next level as capital markets and royalty companies have become much more sophisticated than we evolve the business plans and these business models to fit the modern time. So on that note, I would pass it over to Sandeep. And Sandeep, welcome and congratulations and good luck.

Thank you, Sean. Today, the presenter is going to be with the company, Sandeep Singh. Sandeep joined Osisko as President in January of 2020. For 15 years prior to that, Mr. Singh was an investment banker in the metals and mining industry, where he advised numerous mining companies on growth and financing strategies with Maxit Capital from 2014 to 2020, Dundee Securities from 2010 to '14 and BMO Capital Markets from 2005 to 2010. As Co-Founder of Maxit Capital, he was instrumental in building an independent and highly successful advisory firm, which acted on some of the most complex and value-enhancing transactions in the mining sector. Mr. Singh also holds a Bachelor of Mechanical Engineering Degree from Concordia University and the Masters of Business and Administration degree from Oxford University. Now here's Sandeep.

Thank you, Doug. Hopefully, you can all hear me. And thank you for that intro. Hopefully, you can also see my screen now.

We don't see you yet, Sandeep.

Yes. I'm working on [indiscernible]. You do now. So I think that covers all the infrastructure. So thanks, Doug, and to O&M, first and foremost. We'll have to get you guys some shorter bios on the 2 of us going forward, but appreciate the look back. And also and importantly and most importantly, thanks to Sean, for the history, which I think is important when thinking about our group as a whole, I think there's a lot of good things that have happened and will continue to happen within the broader Osisko family, and I certainly consider myself privileged to kind of take on more of the responsibility from Sean to free him up to do some pretty interesting things that we will talk about as we get into this. So that was kind of in the cards when he asked me to join, been sped up a little bit, maybe more so than both of us expected, but appreciate the confidence and hope to make him proud. So when I last, I guess, it's nice to be speaking, as I said, again, to the O&M family. Thanks for joining us today. The last time I spoke to you, we spoke to you was late March. It was weeks into -- maybe a week into the COVID crisis. It was a pretty different world at the time. We've been very fortunate, as a company, to go through that period pretty much unscathed. And the strength of the business model has really proven itself during that time and now, frankly, on the other side of that, to come out quite well. Hopefully, the same is true for those of you listening, both professionally and personally. By way of just quick context, bear with me a second. Sorry. Just by way of context, as I figure out how to do things here. There are some -- I will be making forward-looking statements here, so please be mindful of that. By way of context, Sean mentioned that we are today, about a USD 2 billion market cap company, the fourth largest royalty and streaming company in the sector, in the world. We have an extremely robust business model. Last year, which was kind of full non-COVID year, we produced -- or generated 78 -- roughly 1,000 ounces of gold, equivalent ounces or GEOs. So just for those not familiar, that's when we convert other metals into gold for comparable purposes. Most of our ounces are gold. The rest is going to be silver and a bit of other. We produced 78,000 ounces of GEOs at a 91% cash margin. So just truly a phenomenal business. If you're less familiar with the royalty business and maybe more familiar with the mining business, the analog would be essentially a mining company that produces gold for less than $200 an ounce, all in, everything that goes into it. So an exceptional business. We -- and in doing so, we don't have any of the capital risk that a mining company would have. We don't have any of the operating risks and commitments that a mining company would have. So as long as our operating partners are producing ounces, we know exactly what we're paying for those ounces, which for most of our assets, our royalties is 0. Those ounces come for free and for our streaming assets, is a de minimis legacy payment that we owe on those ounces. And that's how we derive that pretty exceptional margin. The other hugely important aspect of the company, and Sean alluded to it a little bit, is just the geographic focus. I'll touch on it again, but I think it's worth mentioning in my preamble here. We are largely in North American and Canadian centric, America centric company. We think that's always important. We think there always should be a premium for that. And frankly, in the world we're living in, that premium should only grow and benefit our shareholders. We also have extremely high-growth in our company. I'll touch on that later. The ability to double our production with things that we've already bought and paid for. So a pretty enviable position to be from an organic perspective. And I think we now are in a position where we can benefit from what Sean and the team have done in the last 6 years, which has built a pretty important portfolio in a down market for the most part. Maybe before I switch to the next page, I should mention, touch on that transaction, which is hugely important, not just for Osisko royalties but for our group. That spin out transaction of Osisko Development Corp., which -- with the flagship asset being Barkerville, Cariboo, which many of you would be familiar with, that's an asset we bought -- brought in-house a year ago. Almost to the day when we did it, we said we weren't finished with the structuring of that transaction. It wasn't going to be something that we built in the Osisko Royalties, but it was a value exercise that we were conducting to put it in the right hand so that we would benefit not only from our royalty, but our shareholders of Osisko Royalties will also benefit from that value exercise. And we've accomplished that 2 weeks ago by forming a new company. Essentially a new North American intermediate company once in production, Sean will be the driving force behind it. Our technical team will go do what they do best, which is build mines and our shareholders will benefit as a result of that. And we'll touch on that as we move forward. Sorry, I got to get my own base out of my way here. That portfolio, we've touched on a little bit in more detail. 6 years ago when the company started, it was 1 producing asset, the royalty on Canadian Malartic and 5, I believe, development stage assets. Now, the portfolio has been significantly diversified into having 146 royalties and streams, primarily in the precious metal space, 17 of which are now producing with more coming on every year, frankly, 91% cash margins in 2019, 95% cash margins so far this year. And as I mentioned to you, we think the lowest risk profile from a geopolitical perspective if you look at the chart on the right-hand side, 86% of our value is in North America. 75% of that is just in Canada alone, and that does kind of stick out as 1 of the differentiating factors, huge, pretty significant differentiating factors for ourselves versus our peer group. We're also associated with some of the better miners, most responsible miners in the business. We highlight a few of them at the bottom of this page. You could add others like Alamos Gold, SSR mining, El Dorado, and the list goes on and on. We -- the way I characterize our portfolio is primarily NSR, so primarily free ounces on primary gold mines in Canada. So where we are tied exactly to the primary commodity of those mines, not necessarily a secondary byproduct stream. In situations where those assets are very low cost, first and second quartile on the cost spectrum to the operators that run them, there are assets that are core mines that are core to their business. So they get time, energy and most importantly, money spent on them. So it's a pretty enviable position to be in terms of the portfolio. In terms of the company or the stock. I think there's a lag here, bear with me. We'll get there. There we go. In terms of the company or the stock, we pay the highest dividend in our sector amongst the highest in the mining sector. We've grown it almost every year. This year is a -- it's an odd one with COVID and everything else, but we are on the highest end as we speak. It's important for us to stay that way. So that will be a core tenet of our company going forward, has been, that is not something that will change under the new spectrum. We have the highest trading liquidity or amongst the highest trading liquidity in our peer group again. We'll routinely trade 1 million shares. As Doug mentioned on the NYSE under the ticker symbol OR or the same in Canada on the TSX. So more relative than, frankly, more liquid than some of our larger peers. We have a balance sheet with which to do anything we choose to do in the royalty space. We can definitely punch above our weight, should we find the right opportunity to go after. So from a growth perspective, we are able to do anything external we choose to. We have a very diverse and supportive shareholder base, stock in the hands of people that see long-term value and want to own the stock going forward. And then for all that, we trade at a fairly significant discount to our peer group. And frankly, a discount to many of the mining companies out there that carry full asset risk, whereas we are quite a bit more diversified and low risk. So that's the opportunity. We think the transaction that we undertook 2 weeks ago goes a long way towards undoing any of the reasons for that discount, it will be my job to go out there and market what I think is a much simpler story. Now that we've put the right -- put the assets in the right places. We've always had, in our view, the right assets. We needed to put them where they belonged. That was fair enough. But the value exercise in Barkerville has been pretty important because we bought that asset, as Sean mentioned, in the $1,300 gold range. We now restructured it the $1,900 gold range, creating a significant amount of value, and there's a lot more to come. Just quickly on the ESG front, which is something that's now become quite in vogue. This group, prior to my arrival, has been living and breathing ESG before it was a buzzword. It's been in the DNA of the company. I think anyone who knows and has followed the Osisko story, back to Canadian Malartic knows -- know some of the -- how that came about. You don't get to be drilling in people's backyards with their closed lines drapped over the drills, you don't get to move a town or at the top of a deposit and relocate them to another part of town, where the ground is literally not -- no longer crumbling beneath their feet if you're not doing things the right way. We've carried over, the group has carried over that into the royalty business, which is a much lower footprint business. We don't run or operate any of our mines any -- or our assets. So we provide gold exposure with a very low carbon footprint into a world that is increasingly focused on that as it should be. And -- but we do still keep that ESG focus. We make sure that the investments that we get into, the partnerships we make are also with companies that have the same vision and belief system as we do. So we diligence those and factor that into our diligence process early on. And then try to embed as much influence as we can to make sure that everything gets done the right way going forward, and that we track how that's actually playing out. So a core part of our belief system and it has been since day 1, really. Not new. What's new is how we disclose it and how we talk about it. And frankly, I can probably do a better job of that going forward. It will be something that I focus on, but that's easy to fix. Better disclosure is easy. Doing things the right way is hard. A bit more about the business model. We are a core royalty streaming company, always have been, frankly, but I think we've clarified that for anyone who was confused. And again, I think most of you are familiar with that model, but for those who aren't. This is essentially where we fund other people's projects. We pay upfront for a royalty or a stream of ounces that we then get as those ounces are produced. We don't have, as I mentioned earlier, the capital obligations of those companies thereafter, once we put our bets down. We don't have any of the operating risk or the operating cost risk. We have higher diversification. As a result, we are a USD 2 billion company with 17 producing assets. Obviously, some of them previously more than others, but a $2 billion mining company might have 1 or 2 assets or mines of significance. So our cash flow comes from a much more diverse source -- resources. We have a business model which we can run with 10 senior people, give or take, in the Osisko Royalties stream, with some back office help. And we have all the upside to increase mine life, new discoveries, mine extensions, expansions. So it's a pretty unique business model -- or not unique, but it's a pretty special business model. And it's a low-risk way to get exposure, fantastic exposure to gold. There are -- and there have been a lot of new entrants into that space in the last year, in particular. There was a period where it seemed like there was a new royalty company every week. And that wasn't even an exaggeration. We -- and then a lot of companies, I guess, I would say, to be fair, trying to compete with the likes of Franco-Nevada and Wheaton Precious without that same cost of capital. We don't hide the fact that we've tried to be a little bit different, we think is the right different. Anyone can win an auction even in a very competitive field with a lot of capable bidders if they're prepared to pay the most. Ultimately, Sean and I maybe are just too cheap, but that's not how we think you can build a sustainable business or you should build a sustainable business. It works. It works for a while. It works when the gold price is at your back, and it's always going upwards. But I think we know -- we all know enough about the cyclical nature of our business, but that's not always the case. So the way we try to be different is, a, to deal with groups on a one-on-one basis, a bilateral basis. So we're not necessarily always taking part of every process. Use our expertise to be earlier, be first, go in potentially as we have in a lot of situations before every I and every T is dotted, technically use our technical expertise, that we will retain, by the way, to do that. We often provide equity in conjunction with our royalties, if it lets us get the royalty, if it lets us get the royalty cheaper. That's not something that every royalty company does. So -- and another example would be the recent transaction we did with Regulus Resources, which was probably 2 weeks ago. A scenario where we partnered with them, and funded them to go out and buy back royalties that already existed on their ground, a patchwork of royalties that do exist on their ground. And every time they do, we get half of that royalty, and they get to retire the other half. So a complete win-win for both of us. So again, trying to be a little bit different. The other way, we've added more upside in torque to our business is through what we call the Accelerator business. And the Accelerator business in its pure form, which is where we're focused on going forward is seeding 1 new company a year, which have been roughly the track record in the last 6 years. Finding the right projects, putting the right people in place, funding them with small amounts of capital and then sending them on their way to do the good hard work. In return, we take back the royalties immediately and at the starting point. When we look backwards, which I'll show you the result of, we've got those royalties for cents on $1 with the benefit of hindsight. We've also created royalties that wouldn't exist. Otherwise, we got them without competition. It's a pretty special business. We did take equity positions in those companies. Overall, we're up huge on those equity positions. So it's been a fairly phenomenal piece of our business. And essentially, the way to think of it is situations where we're trying to put 10s and 20s of millions of dollars to work and ultimately turn them into 100s, that's the type of torque we're looking for in those names. And really, we'll show you -- I'll show you later, but we really haven't had any real failures to speak of. When you put on those types of bets, given the early stage nature of it, I mean, I think Sean and I remember having these conversations when we started, and you would have been happy with the 2 out of 5 hit rate, we would have been thrilled with a 3 out of 5 hit rate. As it stands, we really haven't had any misses, even the things that haven't worked just haven't worked yet. It's a pretty important slide here on Slide 8, showing our growth to date since inception and also the pathway forward a little bit. The level of growth in this company to date has been quite remarkable. We've managed to grow almost every year. There was a flattening out of that in 2019, which is really just 1 of our assets, how to buy back rate by the operator and they chose to trigger it. The rest of our assets really do not. And then this year, obviously, this year would have been an up year again, we had a midpoint of guidance of 85,000 ounces a year. And then with assets being shut down in Q2, our guidance has been revised to what you see on this page, 63,000 to 65,000 ounces, roughly. And we published our Q3 production just yesterday of 16,700 ounces -- yes, 16,700 ounces in a year. So for the quarter, excuse me, so a big uptick from Q2, but still not up to full run rate. One thing to remember is all our key assets are now operating, but there's a bit of a lag. It depends on the contract. It depends on our asset. It could be 1 month, it could be a couple of months at times between what an operator produces and when we actually get the delivery of those ounces. So some of that remnant Q2 shutdown, we'll actually get the -- we actually saw the impact of that in Q3. But nonetheless, a nice -- really nice step change in Q3, and we expect another step change in Q4 before we're -- as we kind of see ourselves today being at full steam, so to speak. So significant growth. And what you see on the right-hand side of the slide is the growth that will come into the company with things that we've already bought and paid for, so the ability to double the company's size organically. So a very important phase of organic growth for us, and that's kind of playing out as we speak. There are assets -- we have a relatively large development waiting in our portfolio versus our peer group. Those development assets, frankly, could not be maturing at a better time in the gold cycle where they have the best access to equity they maybe have ever had. So the funding of the remainder of those projects, the investor appetite to see those assets through fruition is exceptional. And those assets are now naturally transitioning to the producer side of the column for us without us having to do anything. We're seeing that with things like Eagle, which is Victoria Gold mine this year, good progress month-over-month, quarter-over-quarter, not quite fully where they thought they'd be. But any time you're building something that big, it does have some minor bumps and bruises. They have largely been quite minor. So we look forward to them continuing to make progress every year. Next year, we have additional growth from an expansion project in Chile that we funded. And again, they've done a fantastic job of not getting too impacted by COVID, continuing to produce, produce well and the expansion there arguably off by a couple of months, at most maybe 3 months from when it started. When you think about everything that's going on in the world, that's pretty much just a hard beat in mining parlance. And then growth pretty much every year thereafter. And so when we think about our company, we think we have the ability to show mid-teens growth year-over-year for the next foreseeable future, which is for a company of our size to show that -- be able to show that type of growth is pretty special. In the top right of this slide, you'll notice the additional 20,000 ounces. We separated it and showed it distinctly, just to make the point. That is what will come our way. The minimum of what we think will come our way through the new company, Osisko Development Corp. that Sean will spearheading. I'll talk about the assets in a little bit. The core asset there being Barkerville, obviously. And we got that -- or our shareholders got that, frankly, were paid to take that. The way we structured that transaction, our shareholders versus all the dollars we have ever put into Barkerville to buy it versus what the current valuation is of the company. We've raised $100 million for -- in ODV in Osisko Development. Our shareholders have been paid to take those 20,000 ounces when they're in production. If you look at the going rate for what 20,000 ounces in production is based on what other groups have been paying quite recently, the going rate for that is USD 0.5 billion. That's the beauty of our model when we do it right. This is that scorecard, that report card I talked to you about on the Accelerator slide, just to finish that part of the argument. This is one of the first times we've started showing this chart. I realize maybe it's a little bit busier than I would have liked, but we'll fix that in time. I used to get a little bit of gentle ribbing because we showed 2 case studies for the Accelerator model and obviously, it was our best 2 case studies. But there wasn't any reason we didn't show the whole spectrum because, frankly, it's worked. When you look at the amount of dollars we've put in, versus what every dollar we've put in on the equity side and to buy the royalties and streams versus what we've taken out or those equities are worth today and what the street consensus, so the analysts say, our assets are worth on the road for streaming side. It's been a phenomenal way. Versus people chasing right now, 3% and 4% type return deals, we think this is a pretty special piece of the story and something we will look to continue to do, again, in its purest form. We've heard you loud and clear on the asset exposure in the company. That intent is not there. Again, it was never there. It was a means to an end. That end is now here. But going forward, trying to find the right Accelerator story to back and get royalties essentially for free when you look backwards, that's smart business, and we'll continue to look to do that in the -- with a smaller portion of our business. And again, like I said to you earlier, even the things arguably that technically haven't "worked" like a Falco Resources right now, really just hasn't worked yet. There's still a great asset there that's been delineated, 6 million ounces of reserves, 9 million ounces of resources that we think will have its moment in the sun. But even there, we haven't funded it either. So it hasn't gotten the backing of the market yet. We think it will. But our money will only go in when the asset is advancing and when the asset has been derisked. So again, we haven't necessarily led with our chin in any of these situations. A lot time here. A little bit more on the Osisko Development transaction, the ODV or ODV transaction, that's important. I just got a lot [indiscernible] by me. We essentially put into that company kind of seeded a new North American mining intermediate with the Cariboo Gold Project, which everyone would know as Barkerville, being the flagship asset, also a newly-acquired Mexican heap leach project, which we think is hugely attractive. It's already 1 million ounces of 1.2 grams, which for heap leach is phenomenal grade. It's in Sonora, which is arguably 1 of the best places you can be from a mining perspective. We also put in $116 million worth of equity positions from Osisko Royalties to act as a bit of a backstop for the balance sheet of Osisko Development and also provide more optionality in terms of some pretty interesting, primarily gold projects that we quite like. And then we funded it with $100 million bought deal from the Street bought by some of the best mining investors in the business. In return, we've kept royalties or streams on all those core assets, primarily, namely the 5% -- 85% NSR royalty on the Cariboo camp, which is a camp, our belief system and that has only grown this year. And a 15% stream on the San Antonio heap leach, I just mentioned in Mexico, which will be fully funded. It's low CapEx to get to production. So that dilution on the asset is kind of behind it. So an $850 million post-money valuation. So after the $100 million raise, our shareholders will, in the first instance, own 88% of it. The new money will own the remaining 12%. And the idea would be for that money to be spent. We want to retain exposure to those sets of assets. We think that every dollar spent on that collection of assets and pushed forward by Sean and team comes back multiple fold. But we also understand that having a public company with a 12% float is not a real sustainable situation. So we will look to dilute as Sean and team push those assets forward. And anyone who knows Sean knows that he pushes things forward pretty fast. So we'll look for the market to fund the development of those assets. For the time being, they're well funded to do everything they need to, to put San Antonio into production for small-scale mining at Bonanza Ledge, which is a satellite of Cariboo, and then have the flagship asset being permitted behind the scenes over the next 18 months or so. So we'll get diluted as Sean and team push those assets forward. And then also we'll look if we can be opportunistic about taking some money off the table, we will. But as I said, the reason we structured it this way is because we won't retain exposure. We think the whole suite of assets, revalues. And frankly, part of the reason we did this. I mean, essentially, this is everything we said we would do. It's taking the spend for Barkerville off of our Osisko Royalties shareholders. It's getting external money to fund the way forward. It's owning less and less of something that we think is not going to be more valuable. The only thing that's different is we did it publicly as opposed to privately. And the markets are now 180 degrees different than when we did the first deal a year ago. So that's kind of the high level description of the transaction. Also if there are questions, we can come back to it later. In terms of what it means for both companies, look, we are the view. I don't think we're alone in that view because the way that the Street, the investors responded to Osisko Development was quite positive. We think we started something pretty special. That collection of assets -- part of the reason we came out with this construct is we were looking around at what people were investing in, we thought we had a pretty special set of assets that we could put together with a best-in-class team that have worked together before. I have been working on these assets and could unlock a significant amount of value. The 6 million ounces alone at the Cariboo camp, there's 1 million high-grade ounces in Mexico. Obviously, as I mentioned, the team led by Sean, who's had the vision for these assets, especially Cariboo from the onset, and now he can go make that vision reality. We look forward to a lot of success out of that name as it moves forward. And frankly, Sean will be back with the O&M group, giving you his full pitch in the coming weeks, a little bit closer to when he's trading. So look for him in November to walk you through that. From an Osisko Royalties perspective, again, it simplifies our story, which we learned -- we heard loud and clear, we needed to do. It gets us back squarely into the royalty and streaming square. It takes the spend off of our balance sheet. It wasn't that much for a company our size, but we were spending $10 million to $15 million a quarter on the asset to move it forward. We also are able -- essentially, we have the people in-house staff both of these companies. So we will be able to reduce our G&A significantly by having the mine builders go off and do what they do best, which is build mines. And that core team that we need due diligence and find new growth assets will stay within Osisko Royalties. As I mentioned to you earlier, we also, through the process, took 20,000 ounces of GEOs once in production, which I've mentioned to you, the going rate for that is pretty special. All told, our see-through value, I should say, for this, when we think about 88% of that company, you back off the equities that we paid for the see-through value for Osisko Royalties' shareholders is about $650 million. We bought Barkerville for $330 million last year. We put $25 million into it in the first half of the year. So a very accretive transaction for us today, and we still think there's a lot of room for that win to grow. And then what we think most importantly sets us up for is to start to claw back that discount that we just think is not justifiable based on any way you look at the quality of the assets in this portfolio. We will go and market the story aggressively, we will get that rerate for you because we think it's pretty self-evident as to why it's deserving. I won't dwell on this too much, but there's an overview of 2 assets, again, a pretty special 6 million-ounce resource in an hour outside of -- an hour flight outside of Vancouver in British Columbia. Clear path to permitting just a week ago or so, maybe it was this week, we announced an [ IBA ] [indiscernible] agreement with the key First Nations. So everything from a permitting perspective lining up well, everything from an exploration perspective, lining up well. And as I said, I mentioned briefly, and you'll hear from Sean one of these days, everything we believe in terms of that not being 1 asset, but being a camp that will ultimately have multiple assets, has been reaffirmed over the last year. And I think the exploration success that Sean and team will have going forward will prove that out. And then a pretty special, equally prospective, heap lease in Mexico that never really got a chance. It went into trouble as a copper oxide project several years ago when copper was down around $2. And unfortunately, the principle behind it passed away and had too much debt. I mean, essentially went bankrupt for every possible reasons you could go bankrupt. And then every time they drilled and hit gold and not copper, they moved on. So this is an asset that Sean and the team has been after for 2.5 years in some way, shape or form. And finally, we put our hands on it. It was always going to go into an operator with Osisko Royalties keeping a royalty or stream. As we started to figure out the operator was actually in our building. It was the natural place to put this near-term cash flow to couple it with the flagship asset in Cariboo. I mentioned this earlier, maybe just graphically, again, because we like it so much. Just to remind everyone of our geographic focus being squarely America centric. the growth, I should say that I talked about earlier, if I didn't, the growth in the company is also very America centric. I mean our growth is coming from Canada. It's coming from the U.S., it's coming from Chile. It's coming from very safe jurisdictions. Which in a post-COVID world arguably -- arguably, the post-COVID world is even more important. I mean quality jurisdictions have always been on a premium. When you look around the world, unfortunately, there's a lot of stress in the system, a lot of economies, a lot of countries that have been looking for ways to fund their way out of that. Mining -- mines have always been thought of as a -- as belonging to the countries that they're in, rightly so in a lot of respects, in most respects. What you want to make sure is you have a clear rule of law so that the rules don't change out from under your feet. And we think we've built our company in a way that, that's always going to be the case. Obviously, we are global. We have assets around the world, but our focus is in good jurisdictions, and that will remain the case. I will touch on Malartic, Canadian Malartic a little bit. We've put the rest of our assets in the appendix. And can touch on any names in the Q&A with maybe, the preamble being our entire portfolio is performing quite well right now, exceptionally well. I mean we're having more positive surprises in the portfolio than we're having negative surprises. We're having situations where the operators are spending a lot of money on our existing producing assets. They're finding new ounces. They're extending mine life. They're talking about expansions that they'll be undergoing and all of that is free to our account. So I couldn't be happier with the way the portfolio is performing. In terms of Malartic, the reason we have it here is it is our flagship asset, and it's also our second flagship asset. So worth talking about. Obviously, Malartic continues to provide very steady 33,000 to 35,000 free ounces to us annually. You've heard me talk about it before, it was still -- maybe in its early days. Last time we spoke as a group, but the underground there is certainly coming into focus, which we said it would, which we hoped it would, and it has, and it is continuing to do so. That is 10 million ounces underneath -- underground ounces underneath the most efficient mill in Canada. It's growing in leaps and bounds. It's open in all directions. The operators, Agnico Eagle and Humana are talking about it growing significantly. They'll have a resource update probably in February, I'd imagine, they'll have a first study that follows that but in Q2, at their Q2 call, they did finally endorse a significant amount of underground development to go access the ore body from underground, get better access to it, be able to drill it more cheaply, understand it better. That's not a mine decision per se, but that's certainly a heck of a step in the right direction. And our view is this might be one of the best brownfield development or best gold development stories in the business. And for us, the operators need to decide how they're going to go mine this sequence, et cetera. The open pit will run until the end of this decade. This will provide multiple decades of significant production to us for free. So we don't think that's fully valued. We don't think that's valued much at all in our stock right now. When you talk about the P/ NAV multiples I showed you earlier, it's barely in the denominator. But as they've now started talking about it more openly, our view is [indiscernible] you may want to get value for this for themselves, how do they go about that process, they're pretty good marketers in their own right, maybe some of the best. You will benefit from that as a byproduct. And it's just as -- no, it's more important in our portfolio than it is to them, and we look forward to them doing a lot of that hard lifting for us. From a gold exposure, just to touch on the last few things, and then we'll open it up for Q&A. I hope I haven't gone too long. We do provide a lot of the highest gold exposure in our sector 81% of our revenue in 2019 was gold driven. Most of the rest was silver. We do have some minor others, but we consider ourselves gold and secondarily a silver company. So that is in our future, our growth is the same way. So that's a key tenet for the company. And I think I made this point earlier, but were worth looking at graphically. This is again, one of the secret ingredients of the royalty business that once you put your bets down, once you buy your assets, you pay for them, everything else is free. And in the last 3 years, we've had 1 million meters, 3 million feet per annum drilled on our grounds, on our royalty grounds per se. Half of that in 2019 was on our producing grounds, where the impact is immediate or more immediate and more tangible. So this is one of the key attributes of the royalty business that if we choose our assets right, with upside, if we choose our partners well with financial capacity and technical ability, this is one of the things that happens into your portfolio. It's happening to us on a lot of our assets right now. Obviously, a healthy gold price incentivizes operators and go through this even faster. But it's really 6 years in, it's kind of the right time. We were putting down a lot of bets in the last 6 years. Sean was building a portfolio. And now those portfolios, those assets are really showing their legs. You see that in a new discovery like the underground Malartic, which is if you see that in the drilling, the types of drilling, the Island Gold -- sorry, Alamos or Island Gold is doing right now, finding higher grade, more of it at depth. Finding more on higher grade on parts of our land package, which have a higher royalty than we do today, talking about significant expansions. Just yesterday, Kinross coming up with their new 10-year plan, which seems to show new life for an asset called Bald Mountain, which in Nevada, which we have exposure too. So all those are the types of things that happen as your royalty portfolio matures, our bigger peers have had the benefit of things rolling in every so often that they weren't expecting. I look forward to it to being -- for it to being our turn to benefit for some of that -- from some of that for our builders. Really, just quickly on the balance sheet. I made this point earlier, the balance sheet is exceptionally strong. This is a Q2 -- end of Q2 snapshot. But so we're moving some things around, and we bought San Antonio, we've put some equities into Osisko Development, things will change, but the outcome will not. Our balance sheet is exceptionally strong. Our credit facility is largely undrawn. We have the ability to do anything we choose to in the growth space. So with that, I will throw it back to either Doug or Scott, happy to take any questions, both myself and Sean are around to do that.

Thank you very much very much. Fascinating. I have 2 quick questions. I'm easily confused being a recovering attorney. When you get the gold from the royalty. You get the gold, do you take delivery, do you sell it? Do you hold it? What happens to it?

Yes, it's a good question. Generally, the latter. Yes, for most of our situations, most of our assets, they're all a little bit different, depends on what you negotiated, what your lawyers helped you paper up. But in most cases, we want delivery of ounces and get delivery of ounces. And then we have a person in-house that helps us sell those ounces. And we get them from the refineries, basically, which is partly why that delay I talked about earlier is we don't get them from the mine per se. We're not sitting on a vault of gold anywhere. We'll get access to our ounces when they're at the refinery, and then we can choose if we want to sell them. There might be a case in a small way where we get kind of the monetary equivalent. But in most cases, we refer to and get the actual gold ounces or silver ounces.

Okay. Great. You mentioned you're going to be out marketing. Can we expect some interesting news flow?

Look, I think we have quite a few catalysts coming up. I mean, again, it's interesting, our catalysts or other people's catalysts in a lot of ways. I think the transaction we did 2 weeks ago was the big strategic thing we had to do this year. We all knew that. You all knew that. I think we did it in a way that we take even more boxes than people expected us to. I think we went -- I don't think -- I know we went above and beyond our investor base. We're 2 thumbs up on it. I can say overwhelming, unanimously. So everyone is happy with what we did. We're certainly happy with what we did. We think it sets up both companies, frankly, phenomenally. I think Sean and team are going to knock it out of the park. My only worry is I'll be looking over my shoulder to see how quickly he's trying to lap me in terms of size. But no, that was our biggest strategic priority this year, really happy with how it played out. We'll go market that, we'll go make sure people understand what we did and why we did it. And we had a lot of -- there were a lot of moving parts to that transaction. So we'll make sure people understand it thoroughly. Haven't been that many good days since -- in the market since we announced that. I mean, it's -- we would have chosen not to put out a meaningful transaction in -- lead up to the U.S. election. And then when every day, it's kind of biased by stimulus on, stimulus off more than anything else, but we'll get past that. We did something we're really happy with, our investor base is really happy with. We'll explain it and get value. And then the rest of the portfolio, as I said, it's providing catalysts on its own. There's more good things happening to us and there are bad things, frankly, by a long shot. And things like Canadian Malartic, again, will be one of those catalysts on the underground, which comes into focus. It's come a long way since I last spoke to you, and I think it will be -- it will go even further when we catch up and speak again next. And then the other catalyst will be external growth driven. The good thing is we are not forced to do anything. We can let certain things go by us right now. If we think the going rate for transactions is too high and benefit from what we already have done and get value for what we've already done, that's job a. But we are seeing a pretty good pipeline of things that we think are good value, good assets, good operators, and we'll continue to mine that, increase upon, mine that field and hopefully come back with some transactions that are smart. We've done some smaller things so far this year already. I mentioned one of them earlier. We'll look to continue to do those types of transactions. And do moderate size things that add significant growth to our company still. The good thing for us is we're of a size based on our portfolio where we could still do transactions that have a big impact. It's not as if we have to do $1 billion deals to make a dent. And so that will be our focus in terms of catalysts for the next 6, 9, 12 months.

Great. I'm going to start to call on the panelist, but I just wanted to remind the listeners that if they have questions, they can send them in on the questions portal or e-mail them in, and we'll ask them. First off, let's call on [ Heinz Toma ]. Are you there today, Heinz? You have to unmute yourself.

Sandeep, thanks for the update. I'm a bit puzzled about your discount at which you are trading, but I understand that you are working on this. With regards to the deal on Osisko Development, do I understand this correctly that right now, you hold 88% of the equity. And so far, you have not taken out any money, but you think that over time, you might dilute, you might sell some of your equity position?

Yes. Look, thanks, Heinz. Those are good questions. I'm equally puzzled about the discount. I guess, look, we knew -- we didn't expect to go straight to 2x NAV the next day. We knew it would be a process. I'm used to telling people, as an adviser, that the clawback of that discount is usually pretty slow and steady. Now I have to kind of swallow my own medicine and live it, but that's fine. We are absolutely convinced that we did the right thing, and we are absolutely convinced that we have the right sort of assets in both companies, and they're both [indiscernible] to do well. And our job is just to be consistent about that, and that will come. Again, I don't think the last 2 weeks were the weeks where anyone was trying to put on too much more exposure. The feedback has been great. You're right about the transaction structure as well, Heinz. So yes, we own 88% of it today, our shareholders do to OR. We didn't take any money off the table, nor did we want to. The messaging always was, we'll take it off our balance sheet, we'll use other people's money to advance it, we'll own less of something more valuable. And yes, obviously, the endgame is to monetize pieces, promote better liquidity but we think the catalyst for that company in the next 6 months, in particular, 6 to 9 months, 6 to 12 months are huge. There's an infill drill program that we think will have north of 3 million ounces. The last study was done off of 2 [indiscernible]. That will be into next year. That will feed a feasibility study for the project and a much bigger project than people remember from a year ago in the public realm. There's putting -- there's production coming from a satellite of Cariboo. And if not, which was not the end of this year or the very beginning of next. There's a heap leach in Mexico that can produce 50,000 to 70,000 ounces a year. With some pretty simple permit amendments for low CapEx, the team is talking about less than USD 25 million to build it. So all those things add real value. There's a 300 -- on a low case, there's a 350,000 ounce a year intermediate North American producer being built. It's just -- with execution to get there. The assets are in the company, the people in the company, people know what they're doing. They've done it before and a lot more complicated situations. So that -- if you look around you, those are $2.5 to $3.5 billion companies before you start talking about the exploration upside on that Cariboo camp. So when we see upside, that's why we structured it this way, but we also understand that we need to show, take some money off the table at the appropriate time, we think that will come. Our ownership will go down. And then ultimately, Sean will get value -- good value for those assets. And we'll make decisions on when and how we take some money off the table, but that's -- I don't want to be too prescriptive about that because I don't think any of us know exactly how things will play out, but that's the end game, Heinz, if that makes sense.

Now we'll see if Michael [ Han ] has any questions.

Can you hear me okay?

Yes.

Okay. Sandeep, see, I have a couple quick questions. The San Antonio project, that -- so that's different from the San Antonio project that Argonaut owns. Is that correct?

Correct.

Okay.

I'm not -- I'm sure there's more San Antonio projects in Mexico, but they are completely [ free ]. This one that really hasn't been in the public view, gosh, in 5 years, give or take. And even when it was last, it was as a copper [ SX-EW ], so copper oxide project. It's something that's been hidden from view, which is kind of the Osisko mold is go back and find other people's mistakes, and Sean has been on this relentlessly. I caught the last 9 months of it. And there's just a bit of an odd process to go through to get it out of the bankruptcy. Again, I caught 9 months, I can't believe how the team tucked it out for 2.5 years, given the number of hoops that we have to jump through. But the reason they did is just a belief system in what this asset could be. There are some gaps in the resource that we infill drill, make the ounces grow pretty quickly, make the strip come down from a moderate number now to an even lower number. The first asset is sticking out from surface. It's got 0 strip. It's not all oxide. It's about 1/3 -- 1/4 or 1/3 oxide, the rest sulfide, but the sulfides here leach better than most people's oxides. The team drilled holes between them. And stopped when they were getting better results, they did their own met test. I mean, this is not something just fell out of the sky. This has been a fair bit of science and efforts gone to it.

Okay. Great. And if you could go back to the slide where you showed the assets going into the development company. So I was just wondering, how was Barkerville valued as that part. Is it -- did you value Barkerville at your cost? What you put in? Or did you -- is there -- how did you value Barkerville in that $850 million?

Sure. I'll break that off for you. It's a good question, Michael. So it's $850 million after we raised $100 million. So the pre money valuation, $750 million in there -- excuse me, base is in the way again. In there, there's $116 million of equities in other companies, we valued that at $100 million. So from the $750 million, take away $100 million to account for, not all of those are liquid, give a bit of a [indiscernible] -- a bit of a haircut. That leaves $650 million of value for the mining assets. And we didn't describe exactly how we thought people should value the pieces. But if you want to give San Antonio within that about $100 million, we think, frankly, the analogs for San Antonio in the market today are $300 million to $400 million type companies with heap leaches in Mexico, just some good examples. But if you gave that $100 million, that leaves $550 million of value for Barkerville and all the other exploration assets for free. As a reminder, as I said it earlier, we paid $330 million for Barkerville and then spent a little bit on it. So it's accretive. It's value-enhancing for us today. And then there's more upside to come in our view going forward.

Okay. That's really helpful. And last quick question. I could ask lots of questions, but I know other people want to ask questions. I just happened -- it was timely that you had this webinar today because I just happened to read an article in one of the mining journals about carbon, an onerous carbon tax in British Columbia and it was saying they were concerned that the number of operating mines would decline to 4 or 5 from 13. I would assume that's in Barkerville's economic studies already. When they did their PEA, they've reflected that tax?

Yes. I mean I don't obviously know the -- I didn't read the article you read. I'll start by saying look, environmental stewardship permitting, that is the name of the game, especially in BC and Canada, and I see Sean gearing up to add to me. So I appreciate that because he's the right person to do it. But the -- I mean, I often hear Sean say that the name of the mining business should be changed to the permitting business. I mean, that's what you need to get right in the first instance, especially when you're dealing with communities, First Nations, you want to make sure you're a good steward of those assets, you're doing things the right way. So rest assured, we've done everything that we can to limit the footprint of that mine. Sean will go into this in a second, but including using every brownfield opportunity, we could, building the mill on top of the old mill footprint. Using the existing mill we have as opposed to creating new disturbances from a tailings perspective. I'm not going to steal his thunder, so I'll stop talking, but we are -- like any good corporate citizen making sure that we limit the impact. So Sean, do you want to pick up on Michael's question more specifically?

Yes, sure. I think the key to the particularly carbon tax that we're talking about today is we were using mostly hydroelectricity that comes in through -- I mean, powerline that we're building about 76 kilometers long. So we'll be on the grid, and we'll be very, very light in terms of direct [ diesel ] and the hydroelectric component in BC is quite economic as well as quite carbon-friendly because it doesn't have a big carbon footprint. So predominantly, we'll be running somewhere 66 kV line with somewhere around 25 megawatts of hydroelectricity, which would be the main supply of energy for the mine. And because it's underground, most everything will be electric.

Yes. It's not a very big footprint either in terms of an asset, right, being an underground mine.

Another Michael. Michael [ Potter ], do you have any questions?

Yes, I do. Looking down the track, what is -- which project do you think will eventually come up to rival Malartic and Malartic underground?

Good question. So look, we did glance over -- those are pretty tough things to do. I think we've structured one of them in the last 2 weeks, getting 35,000 ounces of free gold to our account is pretty special alchemy. Sean pulled it off once with -- and out of Osisko Royalties from the sale of Osisko 1. Now we're benefiting it from the second time around because of the geology of that system. But those types of -- I mean, Malartic is the best gold royalty in the sector, period. So that's a pretty high watermark, but we think we've done pretty well in terms of the 20,000 ounces out of Cariboo in San Antonio. That's about half-half, if you think about what those will be contributing towards us. And really, the Cariboo half is, in our view, late. I mean, ultimately, Sean will be building a bigger project there than what the PA contemplated last year. It's about tons of [indiscernible] for upside and expansion. So we think that is certainly a big win. In terms of some of the other development assets, maybe I'll go to that. Eagle, for instance, is on its way to generating roughly 10-plus thousand ounces to 11,000 ounces, sorry. And ramping up, as I said, every month, every quarter, that's another 5% NSR that we have in Canada. So that's a meaningful contributor. That's kind of halfway to where it needs to be. The Windfall Project, our sister company in Osisko Mining, is another significant contributor to our growth. And so I think we have a fair bit of wins in our future, [indiscernible] 5 would be another one. We have 100% silver stream that we haven't funded. And again, doesn't get the benefit that it should because it needs the best [indiscernible] way permitting. They need to figure out how to coexist with the Glencore smelter on surface, but the ounces there are good. There's a feasibility and a lot of solid engineering there. In our mind, a lot better than some of the development assets that traction in the sector. And as it works, when it works, there'll be a significant silver stream that comes out of that as well. So I think we've got some pretty, pretty potent development catalysts in the company, Mike.

I'm going to turn now to one of our listeners. Dr. Wood, are you able to unmute yourself if you have questions today?

Can you hear me now?

Yes.

Some information about a couple of your other smaller investments. The diamond market is still not doing well. Have you resolved the Renard diamond asset in that situation? If so, how?

Sure. I'll touch on that. Dr. Wood, was there another asset you want to ask as well or?

Yes, the other was Osisko Gold Royalties traded stock equity in [indiscernible] river resources to ore finders. And I was wondering what your interest in, thoughts are about future ore finders and investment in ore finders.

Okay. Sure. I'll start with Renard. And Sean, I don't know if you want to touch on ore finders. I'll be honest. It's not one that I am fully up to speed on. But in terms of Renard, that's a core asset for us, and we still hope for it to become a core asset for us again. Obviously, diamonds have been challenging. We're challenged even before COVID. COVID has not been high until the luxury goods. But we were happy to see the mine come back into the production. It went on care and maintenance longer, started with COVID but stayed on care and maintenance because the diamond market was really impacted by COVID. You got a situation where you've been -- you just couldn't sell your end product anymore. You can't have people fly to buy it. So it stayed on care and maintenance longer to be prudent. We're starting to see if the diamond prices come back. It's now back up and running. The good news is, the team there took the opportunity to get leaner and meaner. It's one of those things where you ask people to try to cut any cost, any fat. And the answer is there's none. And then when you're forced to, you can find some. So we're happy that they took the opportunity to lower their all-in cost structure and make their breakeven point lower, meaningful lower. And then from a diamond price market, it's actually been bouncing back reasonably well, not just for us. We've seen other groups have sales here in the last several weeks that are at pre-COVID levels, and that's pretty good for where we thought we would be. And the company had 330,000 carats that held on to that, hadn't sold and is starting to -- we'll start to sell. And those prices are creeping up sort of at pre-COVID levels. So that's good news. Again, we're reinvesting our dollars in that right now and a little bit better health in the diamond market. And I think we can go back to having a pretty sizable stream. We've got the right partners there. So it's just a matter of giving that asset a little bit more time nurturing it through what it needs to go through on its free start, but it's actually ahead of where I thought it would be when we walked into COVID in March. Sean, I don't know if you've got a view on ore finders that you wanted to share?

Well, not a particularly big one. I mean it's -- exploration was out of vogue for the time [indiscernible] ore finders. We're putting it together. We think the management has done a good job in terms of starting to build a good portfolio, and we're supporters in a positive way, and we'll keep working with management to try and help them build that portfolio where we can. But I think they've done a pretty good job of situating themselves for the current exploration market.

Great. One last thing. When you close your RTO on Osisko Development, I hope you'll consider having a town hall meeting here at O&M, so that we can see better opportunities in Osisko Development on [indiscernible] trading.

We'll be here for sure. One of my most important jobs is just to tee up Sean for the next one in November. So you'll be hearing from him directly.

Scott, have we got any questions from the audience?

Yes, we do. And I want to thank everyone for writing in your questions today. Very appreciated. The first question is, there's 2 questions actually just asking basically the same thing. Will shareholders of Osisko, will shareholders be given Osisko Development shares as a dividend once the new spin co is up and running, and will ODV be spun out to OR shareholders?

Yes. So really, thanks for the question. You're right, the same question. So I think in the first instance, we thought about dividing out the shares as opposed to doing it this way. I guess, a couple of things. One, we found out pretty abruptly last year that royalty company shareholders are not necessarily naturally development company shareholders. So we didn't think that was the best way to create value. There are also some structural impediments about taking that much value out of the company. So we structured it the way we did. We also wanted to retain exposure for OR shareholders and to kind of pick and choose how we -- when we unlock that value and take some money off the table. So we won't -- there is clearly no plan to dividend that out to shareholders. What we will do is let the market finance the company. We'll let it get on its feet and Sean and team to do the work there that adds value. And then we'll -- we are minded to create a public company that works and us owning 88% of it is not the long-term plan by any means. So we'll look to pick our spots, but let the company start to mature a little bit as well. Again, our view is the pathway there is on a conservative basis to a $3 billion intermediate producer in North America with 2 assets. There's a lot of value to unlock starting from today, a $650 million enterprise value to get there. So we want to get some of that benefit for our shareholders as well as [indiscernible].

Next question is when Osisko Royalties acquired all of the Barkerville, what was Barkerville's market cap? And what is the value that OR attributes to the value of the entire Barkerville assets that OR is now vending in Osisko Development, i.e., what is the appreciation on the asset between their purchase and the pending vend into Osisko Development?

Right. And that was a written question, right, Scott?

That is correct. Yes, written.

Yes. So I think I have answered it. Just remind everybody, that see-through value again, it's a bit opaque, but let's call it, $550 million just for Barkerville. We were into it for $330 million plus $25 million in the first half of the year. So I think that's the step change and then the retained ownership. And for free, we got the 20,000 ounces or we opaque to take the 20,000 ounces of GEOs. So hopefully, that answer, and I gave a little bit more detailed earlier, we'll answer that question for whoever posted.

Can you give a general sense of when the next few development stage royalties will likely start cash flowing?

Yes. In a general sense, sure. I mentioned Eagle is a -- this year phenomenon. We're getting the benefit of that ramp up month by month, quarter-by-quarter. Next year, a meaningful change for us will be the expansion of that Mantos, which is the copper mine in Chile [indiscernible] Chile, where we get silver. We pay for that. There are expansions at some of our assets that will start to kick in. Osisko Mining with the Windfall Project is not too far behind in the queue. We'll start to get ounces from San Antonio even before then with Windfall and Barkerville, kind of on the same time line to production. So those will kick in around the same time frame. So those will be some of the more meaningful additions in the next 12 to 36 months basically.

Next question, how long have you known the First Nation's partner for Barkerville?

I could answer that, but I think it's better if Sean does, who's going to be their -- they are partners, but they're more specifically his partners. He'll tackle the next, so I'll let Sean touch on that.

Sure. So the project itself has been partners [indiscernible] for probably 15 years before we got involved with the company. Chris Pharness, who is our Sustainable Development VP, has known Chief Clifford for a long time. We get involved in 2016, which is the first time with Chris Lodder, the current President of Barkerville, was introduced to Clifford, and we've been around there quite a bit with them. Through the pandemic, we work closely with the [indiscernible]. There are aspects there. We've also been -- Chris Lodder, who's the President and a native of [indiscernible], Chris Pharness is a native to the area as well. So we've been around, in and around [indiscernible] BC with our [indiscernible] there on the ground on a personal basis really since 2016.

And the final question that I have is, not sure if this has been covered. With the new Osisko development and we understand correctly, OR will still control 88% of Osisko development. If so, do you see a plan to dividend some of those shares similar to what first mining gold has said on its treasury gold shares?

Yes. I think you're bang on, Scott, I think we have answered it. I think there's no plan for now. That may change. But for now, I think we'll let the company take its first few steps. Good news already is financing happened in still a good market, but a choppy one. It's got some great shoulders backing it. We want to see that company succeed and be funded by the market go forward. And we'll look for our spots as and when those catalysts mentioned earlier are unlocked. So I think, hopefully, that will answer the question.

I appreciate you answering those. And those are the questions from the audience. So we'll turn back over. Yes.

Yes. Well, thanks, Scott. Thanks, Doug, on both our behalves. I appreciate everyone taking the time to listen to us. And again, I think we've accomplished a heck of a lot here in the last 2 weeks, we've set up another really interesting company that I look forward to benefiting from as a shareholder, I look forward to the work that Sean is going to do there. I know he's excited about it. As I said earlier, it was his vision for a long time. And now he got to put his full thumper on it and fingerprints on it. So in the process, I think we've simplified our story significantly. And I think we're well on our way to getting that rerate that we've been talking about, and that's job 1 for us. And the asset portfolio is too good to trade at 1.1x, and that's on us to go get that on your behalf. So that's my closing remarks. Sean, I don't know if you want to add something, actually.

Sure. I'd just like to thank everybody for participating today, and you can always in Osisko Group. We've been significant grinders in the space, and we kind of focus on quality of our work as opposed to the amount where we talk about it, but I think that Sandeep coming to the forefront here to take us to the next stage on the Osisko Royalties level, is a good complement to the work ethic that the Osisko Group has founded on, and we look forward to making you proud with your investments with us.

I think you meant I'm going to work less and talk more, but I'll take it. All right. Thanks. Thanks, everyone. Thanks O&M, and look out for us again, look out for Sean, specifically, in November, but we'll be back around to talk to you about our [indiscernible] soon enough.

Thank you very much.

All right. Thanks, everybody.